Final answer:
Paying off debt reduces the amount of money that a company owes. In this case, if a company uses $100 million of its cash to pay off debt, the company's debt will decrease by $100 million.
Step-by-step explanation:
Paying off debt reduces the amount of money that a company owes. In this case, if a company uses $100 million of its cash to pay off debt, the company's debt will decrease by $100 million. This is because the company is using its own funds to reduce the amount it owes to lenders or creditors. By paying off debt, the company improves its financial position and reduces the interest expenses it would have incurred. For example, if the company had a debt with an annual interest rate of 5%, it would save $5 million in interest payments each year by paying off $100 million of its debt.